Average Retirement Savings by Age: Are You on Track?

Average retirement savings is a frequent topic of conversation amongst investors of any age group. It is natural for people to compare themselves against their peers, but is comparing your retirement savings to someone else’s, or the “average”, helpful? 

Many investors look to national averages or comparisons to peers as a quick way to assess whether they are on track for retirement or not. While these comparisons can be good reference points, they are not verdicts on retirement readiness. In fact, we believe relying too heavily on just reaching the average for retirement savings can create a false sense of security or unnecessary anxiety, depending on your situation.

Retirement outcomes vary widely based on many factors, including current income, career path, household structure, retirement timing, the sources of income you expect in retirement and more. Planning for retirement is not about comparing your finances to others, it’s about whether your resources can support your retirement needs over time.

While you’ll find Fisher Investments’ analysis of this below, context matters. It’s important to understand what these averages represent, what they leave out and how true retirement planning looks beyond averages altogether.

The Right Way to Measure Average Retirement Savings

Investors often refer to the mean account balance when they talk about average retirement savings, calculated by adding all retirement account balances together and dividing by the number of households. These figures can be skewed upward because a smaller number of households have very large balances.

For that reason, median account balance—the midpoint where half of households have more and half have less—often provides a clearer picture of the average retirement savings.

The table below summarizes reported retirement account balances by age group, as of 2022 (the most recent survey data available as of this writing). These figures reflect savings held in retirement accounts such as 401(k)s and individual retirement accounts, not total net worth or retirement income.

Retirement Savings by Age Group

Source: As of 12/15/2025. Federal Reserve, Survey of Consumer Finances.

The Federal Reserve’s data provides a snapshot of how retirement account balances tend to differ across age groups. It’s important to note that these figures do not indicate whether a given household can meet its retirement needs. A retirement account balance that appears high relative to a national average may still fall short of supporting a desired retirement lifestyle, while a balance below the median does not automatically mean retirement is unattainable.

Curious what your income could support? Try our retirement calculator to help calibrate your expectations and define your goals.

How Much Do You Need to Retire?

The answer to this question is fundamentally personal. Retirement goals and objectives vary from person to person, and it’s usually never as simple as identifying an exact dollar amount. Comparing yourself to the numbers above can provide context, encourage long-term awareness and prompt planning conversations. However, it’s important to remember their limitations:

• Average retirement savings are skewed by high-balance households
• Median figures do not inherently reflect spending needs, retirement lifestyle or longevity
• Account size alone does not determine retirement income sustainability

The question is better reframed as: What level of income do you need your resources to support in retirement? Two retirees with the same retirement account balance may experience very different outcomes depending on asset allocation, retirement age and expected income needs.

Here’s a quick example: A hypothetical portfolio of $200,000, in line with median retirement savings for those at retirement age of 65, may support only a modest $10,000 annual income, assuming stock-market-like returns of 10% and a withdrawal rate of 5%. For some retirees, this may be sufficient when combined with Social Security, pension and other sources of income. For others—particularly higher-income households accustomed to a higher annual salary—it may fall short of their retirement goal.

Having below average retirement savings does not automatically mean retirement is unattainable, but it often means trade-offs are required. These may include saving more, adjusting retirement lifestyle expectations or relying more heavily on other income sources

Factors Influencing Retirement Savings

Retirement savings outcomes are shaped by several interconnected factors, including:

• Income level and career trajectory: Higher household income generally increases the ability to save, but higher income often comes with higher spending expectations that carry into retirement.
• Age when saving began: Time is one of the most powerful drivers of retirement security. Starting later often requires higher savings rates, increasing investment risk or adjusted retirement goals to meet income needs. On the other hand, a small amount invested early and allowed to compound for decades can grow far more than larger contributions made later in life.
• Employer plan access and contributions: Access to an employer-sponsored retirement plan, and employer matching when offered, can materially affect long-term savings.
• Savings consistency: Regular saving matters more than short-term market timing.
• Risk tolerance: Risk is a fundamental part of investing, and determining how much one can take can significantly impact the potential growth of their retirement savings. Choosing an asset allocation that allows an investor to stay disciplined to their retirement plan through volatility can help investors avoid costly, emotion-driven mistakes.

Generational Factors

When you were born may also play a role in your retirement savings. Each generation is shaped by different economic conditions, market environments and savings trends. They have also had access to different retirement savings tools. Here’s a quick look at how some factors may have contributed to the savings habits of each generation:

• Baby Boomers (born 1946 – 1964) entered the workforce when defined-benefit pensions were more commonplace, offering at least some guaranteed income in retirement. However, the financial landscape shifted dramatically during their peak earning years. The introduction of the 401(k) in 1978, followed by the Roth IRA in 1998, increased options while the shift away  from pensions transferred the burden of investment risk from employers to employees. Boomers were effectively the pioneers of this self-directed model, often navigating complex investment decisions with little professional guidance. This transition helps explain why many in this generation are approaching retirement with a gap between their savings and needs.
• Generation X (born 1965 – 1980), often called the "sandwich generation," entered the workforce just as the shift away from pensions gained steam. They faced significant market volatility during their prime earning years, notably the dot-com bubble burst in 2000 and the 2008 housing crisis. However, they also saw the dawn of online brokerage firms, which made buying stocks more accessible to the average person.
• Millennials (born 1981 – 1996) graduated high school and college into the 2008 Financial Crisis, a timing that depressed starting salaries and delayed career progression for many. However, millennials were early in their careers as low-cost exchange-traded funds (ETFs), mobile trading apps and other financial innovations led to lowered fees and more democratized access to investing. These tools lowered the barriers of entry to investing.
• Generation Z (born 1997 – 2012) experienced the turbulent shocks of the COVID-19 pandemic, high inflation and supply chain disruptions as young adults and adolescents. These events are likely to have a lasting impact on this generation’s relationship with investing, although how that plays out is still unknown. While these economic shocks may foster caution, this generation has unprecedented access to financial tools. Zero-commission trading, fractional shares and the explosion of financial education on social media all provide opportunities. Gen Z can start investing earlier and with less capital than any generation before them.

Social Security, Pensions and Other Retirement Income

Retirement savings do not exist in isolation. There are many other sources of retirement income other than just retirement account savings. For many households, total retirement income consists of a combination of:

• Retirement account withdrawals
• Social Security benefits
• Pensions, where applicable
• Other income sources, such as rental income or savings accounts

Understanding how these sources work together is central to retirement planning. For instance, a household with modest retirement savings but strong Social Security benefits may be better positioned than account balances alone suggest. Conversely, higher retirement savings may still fall short if income needs are substantial.

From Savings to Sustainable Income: A Smarter Approach to Retirement Planning

Average retirement savings data can provide perspective, but they should never be the foundation of investment decisions. With Fisher Investments, retirement planning goes beyond targeting the average retirement savings number. We take a more holistic approach, focusing on:

• Retirement income needs
• Time horizon and retirement age
• How different market conditions may affect sustainability
• Personal goals for retirement

As a fiduciary investment adviser, we are obligated to put our clients’ interests first. We believe that responsibility includes helping investors understand their entire financial picture, not focusing on averages. This helps them focus on building retirement plans around their long-term financial goals while avoiding harmful mistakes.

At Fisher Investments, retirement planning is education-driven and income-focused. Rather than anchoring decisions to median savings or average 401(k) balances, our fiduciary planning process evaluates how your resources can support a comfortable retirement under a range of conditions.

If you want to explore how your savings, income sources and retirement goals work together, you can learn more through Fisher Investments’ retirement planning resources or download the guide to When to Retire to continue the conversation.

This is why Fisher Investments’ retirement planning focuses on income sustainability tailored to your lifestyle rather than savings totals.

This article is for informational and educational purposes only and should not be construed as investment advice or a recommendation regarding any particular investment strategy or course of action. The information presented is general in nature and does not take into account the individual circumstances, objectives, or financial situation of any specific investor. We provide our general comments to you based on information we believe to be reliable. There can be no assurances that we will continue to hold this view; and we may change our views at any time based on new information, analysis or reconsideration. Some of the information we have produced for you may have been obtained from a third-party source that is not affiliated with Fisher Investments.

Fisher Investments has no duty or obligation to update the information contained herein.